Gold futures rise on festival buying, global cues

Gold futures prices surged by 1.17 per cent on the Multi Commodity Exchange (MCX) today as traders involved in enlarging their positions to meet the coming marriage and festival demand.     

Trading sentiment also turned bullish after reports of gold climbed to a three-month high in London as a weakening dollar boosted demand for the metal as an alternative investment.     

Gold for far-month April contract rose by 1.17 per cent to Rs 15,563 per 10 grams with an open interest of just three lots.     

Similarly, gold for delivery in February month climbed 1.05 per cent to Rs 15,600 per 10 grams in 39 lots, and October month contract by 0.55 per cent to Rs 15,605 per 10 grams, clocking an open interest of 16,390 lots. 

Marketmen said beside steep rise in it prices in overseas, pick up in demand ahead of marriage and festival season mainly led to an upsurge in gold prices at futures market.    

Meanwhile, gold advanced $5.80 to $984.30 an ounce, the highest since June 3.